Riyanth · Follow
7 min read · Jan 26, 2024
BlackRock was founded in 1988 by Larry Fink, Robert Kapito, Susan Wagner, Barbara Novick, Keith Anderson, and Ben Golub. The company started as a risk management and fixed income institutional asset manager called Blackstone Financial Management. It was a spin-off from the private equity firm Blackstone Group.
Larry Fink, the driving force behind BlackRock, had previously worked at First Boston as a bond trader. He pioneered the use of mortgage-backed securities as a co-founder of First Boston’s mortgage securities division in the 1970s. In 1988, Fink wanted to start his own company so he contacted some of his key contacts at First Boston including Ralph Schlosstein and Steve Schwarzman (who went on to found Blackstone). However, First Boston did not want Fink leaving and taking his expertise to a competitor.
Fink struck a deal to start an independent company but would own only 40% of it, with First Boston owning the rest. This company launched as Blackstone Financial Management in 1988 with Fink as CEO. It had an initial investment of $5 million and seven employees. The company advised pension funds and endowments on managing their fixed-income assets by investing in mortgage-backed securities.
In 1992, Fink and other partners bought out First Boston’s interest and launched the company as BlackRock. In 1995, BlackRock merged with the asset management business of PNC Financial Services Group. PNC retained a 40% ownership of the combined company.
Under Fink’s leadership, BlackRock then went on a buying spree in the 2000s, acquiring companies across the investment management spectrum. Major acquisitions included Quellos Group (2007), Merrill Lynch Investment Managers (2006), Barclays Global Investors (2009), and BGI Atlantic (2010). By 2011, BlackRock had become the largest asset manager in the world.
Today, BlackRock remains a global leader in investment management, risk management, and advisory services. It manages over $7 trillion in assets and continues to be spearheaded by Larry Fink. The firm pioneered passive investing and iShares exchange-traded funds. BlackRock has shaped the financial world by helping institutional and individual investors manage risk and meet financial goals.
BlackRock owns major stakes in many large publicly-traded companies due to its status as one of the world’s largest asset managers. As of 2022, BlackRock was reported to be a top shareholder in the following companies:
Some of the major sports/fitness companies that BlackRock has ownership stakes in:
- Nike — BlackRock owns over 5% of Nike shares, making it one of the largest shareholders in the sports apparel giant.
- Under Armour — BlackRock is the second largest shareholder in Under Armour with over 11% of shares.
- Adidas — BlackRock owns over 5% of shares in this major global sportswear company.
- Peloton — BlackRock owns a 5.4% stake in the connected fitness company Peloton.
- Planet Fitness — BlackRock holds around 5% of Planet Fitness shares.
- Nautilus Inc — This fitness equipment maker has BlackRock as its largest institutional shareholder with over 11% of shares.
- lululemon — BlackRock owns about 3% of the athletic apparel retailer lululemon.
- Callaway Golf — BlackRock is the second largest shareholder in Callaway Golf with around 10% of shares.
- Fox Factory — BlackRock owns over 10% of this sports equipment maker.
- Manchester United — BlackRock owns around 5% of the famous football club.
- Madison Square Garden Sports — BlackRock is the second largest shareholder with around 10%.
BlackRock’s major shareholdings in large food companies:
- Nestlé — BlackRock owns over 5% of shares in Nestlé, the world’s largest food company.
- PepsiCo — BlackRock is the largest shareholder in PepsiCo with over 7% of shares.
- Mondelez International — BlackRock owns over 5% of this snack food company’s shares.
- Danone — BlackRock holds around 6% of shares in the French dairy and foods multinational.
- General Mills — BlackRock is the second largest investor in General Mills with over 7% of shares.
- Kellogg’s — BlackRock owns around 8% of the breakfast foods giant Kellogg’s.
- Kraft Heinz — BlackRock is the second largest shareholder of Kraft Heinz with over 5% ownership.
- Hormel Foods — BlackRock owns over 10% of shares in Hormel, a leading meat processor.
- Campbell Soup — BlackRock holds around 7% of Campbell Soup shares.
- J.M. Smucker — BlackRock owns around 11% of this food manufacturer.
- McCormick & Company — BlackRock holds around 9% of shares in the spices and seasonings leader.
Major banks that BlackRock has significant ownership stakes in:
- JPMorgan Chase — BlackRock owns over 6% of shares, making it the largest single shareholder.
- Bank of America — BlackRock owns over 5% of BofA shares, making it the biggest investor.
- Wells Fargo — BlackRock owns around 6% of shares in Wells Fargo.
- Citigroup — BlackRock owns over 5% of Citi shares.
- Goldman Sachs — BlackRock owns around 4% of Goldman shares.
- Morgan Stanley — BlackRock owns around 5% of shares.
- US Bancorp — BlackRock owns around 7% of this major US regional bank.
- PNC Financial Services — BlackRock owns over 20% of PNC, which has a long history with BlackRock.
- Capital One — BlackRock owns around 5% of this major consumer bank.
- Charles Schwab Corp — BlackRock owns around 5% of the brokerage and banking giant.
- BNP Paribas — BlackRock owns over 5% of France’s largest bank.
- Barclays — BlackRock is the largest shareholder in the British bank with over 6% of shares.
- HSBC — BlackRock owns around 7% of shares in this massive global bank.
BlackRock’s major investments in beauty/cosmetics companies:
- L’Oreal — BlackRock owns over 5% of shares in L’Oreal, making it the 2nd largest shareholder in the world’s biggest cosmetics company.
- Estee Lauder — BlackRock is the largest institutional shareholder in Estee Lauder with over 8% ownership.
- Shiseido — BlackRock owns over 5% of shares in this major Japanese cosmetics company.
- Coty — BlackRock is the largest shareholder in fragrance & beauty company Coty with about 10% ownership.
- Ulta Beauty — BlackRock owns around 5% of shares in Ulta, the largest U.S. beauty retailer.
- Sally Beauty Holdings — BlackRock is the largest shareholder with 14% ownership.
- Inter Parfums — BlackRock owns over 10% of this perfume & fragrance manufacturer.
- e.l.f. Beauty — BlackRock is the largest shareholder in e.l.f. cosmetics with 12% ownership.
- Revlon — BlackRock owns around 9% of the troubled cosmetics company Revlon.
- CeraVe — BlackRock has a minority stake in the popular skincare brand CeraVe.
Major construction companies that BlackRock holds significant ownership stakes in:
- Vinci — BlackRock owns over 5% of shares in Vinci, the largest construction company in the world based on revenue.
- Bouygues — BlackRock owns over 5% of this major French construction firm.
- Eiffa*ge — BlackRock holds around 5% of shares in this European civil engineering contractor.
- Fluor Corp — BlackRock is the largest shareholder in Fluor with over 13% ownership. Fluor is one of the biggest engineering, procurement and construction companies globally.
- AECOM — BlackRock owns over 10% of shares in this major American infrastructure firm.
- Jacobs Engineering — BlackRock owns around 8% of this large technical professional services company.
- Quanta Services — BlackRock holds around 9% of shares in this contractor focused on electricity and pipeline infrastructure.
- Granite Construction — BlackRock owns around 11% of this contractor based primarily in the United States.
- MasTec — BlackRock owns around 5% of this infrastructure construction company known for oil/gas pipeline projects.
- PulteGroup — BlackRock owns around 10% of one of America’s largest home construction companies.
Luxury and premium brands that BlackRock has ownership stakes in:
- LVMH — BlackRock owns over 5% of shares in LVMH, the world’s largest luxury conglomerate owning brands like Louis Vuitton, Dior, Tiffany & Co., Tag Heuer, Bulgari and more.
- Kering — BlackRock holds about 4% of this French luxury group that owns Gucci, Yves Saint Laurent, Bottega Veneta and others.
- Richemont — BlackRock owns around 3% of this Swiss luxury goods holding company which owns Cartier, Van Cleef & Arpels, Montblanc and more.
- Estee Lauder — BlackRock owns over 8% of this major global prestige beauty company.
- Capri Holdings — BlackRock holds around 12% of this group which owns luxury brands Versace, Jimmy Choo, and Michael Kors.
- Tapestry — BlackRock is the largest shareholder of Tapestry, parent company of Coach, Kate Spade, and Stuart Weitzman with 12% ownership.
- Canada Goose — BlackRock owns over 5% of shares in this high-end luxury apparel brand known for winter jackets.
- Ferrari — BlackRock holds around 5% of the iconic Italian luxury sports car maker.
- Signet Jewelers — BlackRock owns around 11% of this retailer which operates jewelry chains like Kay, Jared, and Zales.
- Ralph Lauren — BlackRock is the second largest shareholder with about 7% of the premium fashion brand.
*These are only some of the companies that BlackRock has shares with. Comment down if you want a detailed explainiation on this topic and follow us for more*
Critics have argued that BlackRock’s enormous corporate shareholdings concentrated in too few hands could undermine healthy competition. As an influential shareholder, the company could theoretically pressure companies to act in ways that benefit BlackRock’s bottom line rather than competitors or stakeholders.
Supporters counter that BlackRock takes a relatively passive investment approach focused on long-term returns rather than trying to exert control. The company has also outlined various initiatives around sustainable investing and stakeholder capitalism.
Regardless, BlackRock’s sizable ownership stakes make it an enormously influential player in corporate America and the global economy. The company pioneered a model of investment management that relies on scale and diversification — and now finds itself with unparalleled influence as shares concentrate into its funds.
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